ROSEN, A LEADING INVESTOR RIGHTS LAW FIRM, Encourages Cogent Communications Holdings, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - CCOI

Rosen Law Firm, a global investor rights law firm, announces a class action lawsuit on behalf of purchasers of common stock of Cogent Communications Holdings, Inc. (NASDAQ: CCOI) between February 29, 2024 and May 1, 2026, inclusive (the “Class Period”).

According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) the vast majority of the purported orders in Cogent’s optical wavelength “backlog” were unlikely to ever result in a paid order; (2) large quantities of the customers in Cogent’s purported optical wavelength “backlog” were unable or unwilling to accept delivery even if Cogent was in a position to provision the wavelength in a timely manner; (3) as a result of the foregoing, defendants had materially misrepresented customer demand for Cogent’s optical wavelength services and the nature of Cogent’s purported “backlog” of wavelength orders; (4) as a result of the foregoing, Cogent was not on track to achieve its revenue and margin targets and such targets lacked a reasonable basis in objective fact; (5) Cogent did not have the financial capacity or business fundamentals to maintain its long-standing dividend policy; and (6) there was a material, undisclosed risk that defendant David Schaeffer would be forced to sell vast quantities of Cogent stock as a result of his high-risk pledging activities, thereby further depressing the price of Cogent stock in the event the truth regarding Cogent’s “backlog,” demand issues, and financial position were ever revealed.

When the true details entered the market, the lawsuit claims that investors suffered damages.